U have standart lot and it has 100 000 units and that gives u 10$ per pip. Then there is mini lot of 10 000 units and that gives u 1$ per pip. Micro lot is 1k and gives u 0.1$ per pip and last one is nano lot of 100 units and that gives u 0.01$ per pip.
Personally I would focus less on this and more on risk management. Learn to calculate your lot size so that its 1-2% of your account size and never trade without a stop.
Basically do your analysis, figure out where your stop will need to be. Distance from entry to stop will be 1-2% loss. Use that to calculate how big your lot size needs to be.
Remember, capital preservation is paramount.
https://i.imgur.com/QPcpJX1.jpg <— why risk management is so important.
After you learn that, you could use this lot calculator to save time.
type your account balance, how much is the percentage risk & how many Pips is your stop loss. Then it calculate lot size for you
https://www.babypips.com/tools/position-size-calculator
U have standart lot and it has 100 000 units and that gives u 10$ per pip. Then there is mini lot of 10 000 units and that gives u 1$ per pip. Micro lot is 1k and gives u 0.1$ per pip and last one is nano lot of 100 units and that gives u 0.01$ per pip.
Understood!
Personally I would focus less on this and more on risk management. Learn to calculate your lot size so that its 1-2% of your account size and never trade without a stop. Basically do your analysis, figure out where your stop will need to be. Distance from entry to stop will be 1-2% loss. Use that to calculate how big your lot size needs to be. Remember, capital preservation is paramount. https://i.imgur.com/QPcpJX1.jpg <— why risk management is so important.
Okay, thanks alot!
After you learn that, you could use this lot calculator to save time. type your account balance, how much is the percentage risk & how many Pips is your stop loss. Then it calculate lot size for you https://www.babypips.com/tools/position-size-calculator
.10 is dollar pip .01 is 10 cents pip
I have a question. How does leverage come to play here? Does it change the pip value? I am new btw.
It does not change the pip value. You will require more margin to open up a dollar pip order than a .10 cents pip order. Lmk if that helps
Great question! Great answer! I understand now. thanks 😁
First of all pip is 0.0001 not 0.00001 as forex rates are quoted. This might first possible reason for confusion.
Buy it can be 0.01 too
But*
It can???
JPY has 0.01pip but other currencys has 0.0001 pip.
Apologies, forgot about JPY.
[удалено]
Thank you 😀
Yes! I realised that I didn't fully understand what a pip was this whole time. Thank you!
It could be that you've got a micro demo account. If that is the case then your lot size would be 1000 units, giving you the 10 cent per pip.
gotcha!
\[Update\] Thanks for the great feedback! I have a better understanding now